Correlation Between Inly Media and Lushang Property
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By analyzing existing cross correlation between Inly Media Co and Lushang Property Co, you can compare the effects of market volatilities on Inly Media and Lushang Property and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Inly Media with a short position of Lushang Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inly Media and Lushang Property.
Diversification Opportunities for Inly Media and Lushang Property
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Inly and Lushang is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Inly Media Co and Lushang Property Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lushang Property and Inly Media is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Inly Media Co are associated (or correlated) with Lushang Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lushang Property has no effect on the direction of Inly Media i.e., Inly Media and Lushang Property go up and down completely randomly.
Pair Corralation between Inly Media and Lushang Property
Assuming the 90 days trading horizon Inly Media Co is expected to generate 1.49 times more return on investment than Lushang Property. However, Inly Media is 1.49 times more volatile than Lushang Property Co. It trades about 0.16 of its potential returns per unit of risk. Lushang Property Co is currently generating about 0.11 per unit of risk. If you would invest 1,129 in Inly Media Co on September 2, 2024 and sell it today you would earn a total of 460.00 from holding Inly Media Co or generate 40.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inly Media Co vs. Lushang Property Co
Performance |
| Timeline |
| Inly Media |
| Lushang Property |
Inly Media and Lushang Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inly Media and Lushang Property
The main advantage of trading using opposite Inly Media and Lushang Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inly Media position performs unexpectedly, Lushang Property can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Lushang Property will offset losses from the drop in Lushang Property's long position.| Inly Media vs. Milkyway Chemical Supply | Inly Media vs. Tianshui Huatian Technology | Inly Media vs. Western Superconducting Tech | Inly Media vs. Do Fluoride Chemicals Co |
| Lushang Property vs. Sinofibers Technology Co | Lushang Property vs. Inly Media Co | Lushang Property vs. TVZone Media Co | Lushang Property vs. Lander Sports Development |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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